Business
Proposed acquisition of PBM for $85m
Proposed acquisition of PBM for $85m.
About this update from Imi Plc
[{"type":"text","content":"\n \nRNS Number : 5528J IMI PLC 20 August 2019 \n\n20 August 2019\nIMI announces the proposed acquisition of speciality valve manufacturer PBM for $85m \nIMI plc (\"IMI\" or the \"Group\") announces the proposed acquisition of PBM Inc., (\"PBM\") for an enterprise value of $85m (£70.3m1). PBM will become part of IMI's Critical Engineering division. In the year to December 2018, PBM generated revenues of $35.6m (£29.4m), adjusted EBITDA of $6.8m (£5.6m) and adjusted EBIT of $6.3m (£5.2m).\n\nThe proposed acquisition of PBM is fully aligned with IMI's strategy and represents an important opportunity to broaden IMI Critical Engineering's offering into attractive, adjacent markets. Closing is expected to take place within the next two months, subject to normal merger filings.\n\nPBM overview\nPBM is a manufacturer of high-quality industrial valves and flow control products. The company is based in Irwin, Pennsylvania, USA and end-markets include Pharmaceutical / Biotechnology, Consumer Products and Chemical. In its largest segment Pharma / Bio, PBM enjoys a leading market position in the US. The company is owned by the senior management team who will remain with the business post-acquisition, apart from the retiring Chairman.\nTransaction highlights\n\n\n\n\nÜ \n\n\nThe acquisition extends IMI Critical Engineering's market presence into new, growing segments - including Pharmaceutical / Biotechnology - fully in-line with IMI's stated strategy.\n\n\n\n\nÜ \n\n\nPBM's reputation for responding quickly to customer needs and developing solutions to industry problems are characteristics that fit well with IMI's operating model.\n\n\n\n\nÜ \n\n\nPBM enjoys strong distributor and representative relationships - particularly within its main US markets. There are clear opportunities to broaden the market access of both PBM and IMI through their respective routes to market.\n\n\n\n\nÜ \n\n\nThe sharing of best practice between the businesses will facilitate further operational improvement at PBM.\n\n\n\n\nÜ \n\n\nPBM will be both margin and earnings accretive to IMI. \n\n\n\n\nÜ \n\n\nThe acquisition will deliver a financial return in excess of IMI's cost of capital by the end of year three, before revenue synergies, thereby maintaining the Group's record of strict financial discipline.\n\n\n\n\n \nCommenting on the acquisition, Roy...